Last night, I went to a financial seminar put on by a financial advisor and his associates. It was pretty interesting and I'd like to pass on some of the info they presented. It's amazing how everything is connected to everything else.
The financial advisor said that elections always impact the economy and the outcome of the election makes a MAJOR impact. He said that studies
on the elections and economy over the past 16 elections have been done and the following was found to be true:
When an incumbent candidate won the election, in 14 out of 16 elections, there were gains to the economy and financial gain for investors for the next couple of years, particularly when the incumbent was a republican. When the incumbent lost and the presidency changed parties, there were losses to the economy and investors.
He also said that the government, historically, does not change hands during a war, so you can figure if the war in Iraq is considered ongoing, it is unlikely the presidency will change parties. If the war in Iraq is over, then a change in the white house could happen. I believe he said an election has never resulted in a change of party during a wartime in our country.
Another interesting fact is that the presidential approval rate and the S&P go hand in hand. When the president's approval rate goes up, so does the S&P. When it's down, so goes the S&P. That is a direct impact on the economy.
People in this country who have some money and would like to be allowed to keep what they've earned and built, are likely to vote republican, almost regardless of other issues.
Usually, one candidate or the other winning office does not affect you in your daily life. Except in the area of finance, and that really only applies to the people who are investors or have some finances to protect. The elections will directly affect an investor's net worth and financial growth during the next couple of years, be it positive or negative.
Fortunately we all have freedom of choice in this country and you are all free to go and vote for the flea bitten varmint that you think will harm your life the least. Isn't freedom grand?
In a related topic:
I'm reading a good book titled "Rich Dad Poor Dad" by Robert Kiyosaki. This book explains why rich people get richer and the poor and middle class struggle their whole lives. There are some very basic differences in the way rich people think.
One example: Rich people build their "assets" and they know the difference between an asset and a liability. Assets make you money, liabilities cost you money. Therefore, your cars and homes are not assets, they are liabilities. (Poor and middlers think these are assets)Assets are stocks, bonds, mutual funds, income real estate, businesses you don't have to work in, royalities, etc. Every dollar you put into your assets makes you money. Asset Dollars are like little employees who never take a break, never go on vacation, and work diligently, 24/7.
Rich people build their assets to the point that their assets are making much more money then they need to live on. They buy luxuries with some of the overflow.
Poor and middle class people put their luxuries on credit and then bust their ass forever making payments on the lifestyle they can't yet afford.
Important thing to know: Once your assets earn enough money each month to cover your expenses, you are independently wealthy. You are not yet rich, but you are independent and you are wealthy, because if you lose your job, you still have everything covered. That is not where you should stop though. Once you reach that level, you can heave a sigh of relief, but keep your day job, and keep building your assets, because the bigger your assets are, the more money it generates and the wealthier you become. Eventually, you can live on part of your dividends and continue to build wealth with the rest.
The biggest need I have is security. This is something I have not ever been able to capture. Even when I was married, I never knew when the shoe was going to drop and I struggled more with money when I was married than I ever have since then. But I need financial security for peace of mind and this is the way to get it. Once I have built my assets up to the point that they can support my living expenses if I hit hard times, I'm secure, FOREVER. That's my goal.
And I'm not even done with the book!
Soon, I shall be ruling the WORLD!!!
::insert maniacal laughter here::